The following information pertains to Lance Company.

1.		Cash balance per bank, July 31, $7,328.
2.		July bank service charge not recorded by the depositor $38.
3.		Cash balance per books, July 31, $7,364.
4.		Deposits in transit, July 31, $2,700.
5.		$2,016 collected for Lance Company in July by the bank through electronic funds transfer. The collection has not been recorded by Lance Company.
6.		Outstanding checks, July 31, $686.

1- Prepare a bank reconciliation at July 31, 2017 2- Journalize the adjusting entries at July 31 on the books of Lance Company